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captioning sponsored by macneil/lehrer productions >> brown: president obama cuts short his vacation to head back to washington, while harry reid says the country is headed toward the fiscal cliff. good evening, i'm jeffrey brown. >> warner: and i'm margaret warner. on the "newshour" tonight, we have the latest on efforts to avert the looming deadline from todd zwillich of public radio international. >> brown: then, geo-politics and children: russia moves to end adoptions by american parents. >> warner: what austerity measures look like at street level: we have a report from athens. >> by the end of 2013 greece would have a worse depression than the great depression in the u.s. >> brown: a player in campaign politics, but what of the current debt debate? we talk with tea party ally, matt kibbe. >> warner: and as e.p.a. chief lisa jackson steps down, we assess the track record of the administration's environmental agency. >> brown: that's all ahead on tonight's "newshour." >> major funding for the pbs newshour has been provided by: ♪ ♪ moving our economy for 160 years. bnsf, the engine that connects us. >> and by the alfred p. sloan foundation. supporting science, technology, and improved economic performance and financial literacy in the 21st century. >> and with the ongoing support of these institutions and foundations. and... >> this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> warner: five days and counting with plenty of tit-for- tat charges, but no agreement in sight. that, in short, summed up the state of affairs in washington today as the fiscal cliff deadline loomed, january first. it would mean more than $600 billion in across-the-board tax increases and automatic spending cuts. >> come the first of this year, americans will have less income than they have today. if we go over the cliff, and it looks like that's where we're headed. >> warner: this morning, the senate's democratic majority leader, harry reid, was blunt about chances for a deal. and he blamed house speaker john boehner. just before christmas, boehner floated his so-called "plan b"-- letting taxes rise on millionaires. but faced with opposition in republican ranks, he pulled it, and sent the house home for the holiday. reid charged today politics explained why the speaker had not yet called the house back. >> john boehner seems to care more about keeping his speakership than keeping the nation on a firm financial footing. it's obvious what's going on. he's waiting until january 3 to get reelected to speaker before he gets serious about negotiations. >> warner: a boenhner spokesman shot back, "harry reid should talk less and legislate more." but late today, republican leaders put out word that the house will reconvene on sunday. yesterday, they challenged the senate to take the next step, by extending the bush-era tax cuts for all income groups. in a joint statement, they said, "the house will take... action on whatever the senate can pass, but the senate first must act. " president obama returned early from hawaii today, still pushing to extend tax cuts for the middle class, but raise rates on the well-off. aides said he made phone calls last night to speaker boehner and house minority leader nancy pelosi, as well as senator reid and his opposite number, minority leader mitch mcconnell. but today, mcconnell gave no indication of movement. >> last night i told the president we'd be happy to look at whatever he proposes, but the truth is we're coming up against a hard deadline here, and as i said this is a conversation we should have had months ago. and republicans aren't about to write a blank check for anything senate democrats put forward just because we find ourselves at the edge of the cliff. >> reporter: adding to the urgency, treasury secretary timothy geithner warned he'll have to begin taking "extraordinary measures" to postpone a goverent default. the government is on track to hit its borrowing limit on monday, he said with no prospect of congressional action to raise the limit. here now to help us unravel what's going on is todd zwillich. he's washington correspondent for "the takeaway" on public radio international. todd, welcome back. decode this for us. are the players privately as bleak about the prospects as their public statement suggests? >> not as bleak, margaret, but bleaker than they were even a week ago and that's not terribly encouraging. the president as you reported is flying back to washington last night and some members of congress are coming back earlier than others. there will be some meetings here, there have to be some meetings between the principals and the president. there are a couple of options in the last couple of days even though it seems like five days is terribly, terribly short. there shall bills floating out there to keep tax rates where they're at for people making $250,000 and below. th could slide around. there's a senate bill that floats around. there's the president's offer which could still be amended. option 3, of course. is to go over the cliff and fight this out on january 1. >> warner: are there any meaningful back-channel negotiations going on? >> leadership aides on both sides say the channels have been open even during the christmas break. when the president called senator mcconnell and others last night, senator mcconnell made clear to say that's the first time he's talked to a democrat since thanksgiving. now that sounds like they haven't been talking at all but that's not true because we all know the president and the speaker have been engaged in close negotiations and their staff even closer. even when the speaker and the president don't talk the negotiators do. >> warner: why late today did speaker boehner call for the house to reconvene on sunday? >> because he knows that there is going to be something probably to vote on and even if there's not the president has flown back, the senate is here, the country is watching. if you were the speaker of the house would you want your members to be seen as him on vacation zipping champagne on new year's eve and everybody else is in washington working. it's a combination of optics for sure, not wanting to be seen as off on vacation, but there is likely to be something that democrats muster to get voted on. it would have to probably get through the senate first but john boehner may need his members here. >> warner: now you heard mitch mcconnell refer to -- "we're happy to look at anything the president proposes." what is the president's role right now? >> well, the president ran on tax rates. the president right now, his role is knee deep, margaret. there have been other iterations of debt talks, supercommittee, where you saw the president try to really keep arm's length from a dysfunctional congress. the congress -- the democratic house and the republican senate have proved that they don't have any common ground on taxes. there's nothing that one side can agree to that the other side will agree to. that's the president's role here having run on tax increases for people making $250,000 and above, not to mention all that entitlement talk. he ran on it and he won. he'll have to fight this out next year for sure. he would like to get some of the math off of the table here if he can. >> warner: are there schools of thought in both parties that each may think he's going to be in the stronger position after going over the cliff? >> certainly. "people" on both sides who think that. liberal democrats in particular say this republican orthodoxy, no tax increases at all, remember, those bush tax rates expire on new year's eve and they say if we go over the so-called fiscal cliff, take all the tax votes you want, they're ll tax cut votes. and conservative republicans believe their bargaining position improves. you reported on the debt limit but that becomes more of a concern as february approaches. they think they have leverage there to come bean the debt limit with the debate over more spending cut and more leverage on what they want from taxes. so there are strong voices on both sides so they say go over. >> warner: we better fasten our seat belts. ed to >> brown: still to come on the "newshour": a ban on adoptions from russia; the impact of austerity in greece; the tea party and the fiscal cliff and the administration's environmental record. but first, the other news of the day. here's kwame holman. >> holman: wall street was down much of the day, but trimmed its losses after news that the house will convene sunday to focus on the fiscal cliff. in the end, the dow jones industrial average shed 18 points to close at 13,096. the nasdaq fell four points to close under 2,986. also today, the labor department reported the number of new claims for unemployment benefits fell this week to the lowest level since march of 2008. president obama is urging dockworkers and shippers to avoid a crippling strike at atlantic and gulf coast ports. it would be the first since 1977. the workers' union contract expires this weekend, and a white house spokesman said today the two sides need to agree on a contract extension as soon as possible. talks broke down last week in a dispute over wages and royalties. the christmas season storm that blasted the south and midwest swept across the upper northeast and new england today and the death count climbed to 16. the system dumped a foot or more of snow in parts of pennsylvania, upstate new york and new hampshire. in some places, snow brought road travel to a standstill. at the same time, operations at major airports improved, with far fewer delays than earlier this week. in india, the embattled prime minister remained under pressure to take action against sexual assaults after a gang rape this month triggered violent protests. manmohan singh promised a thorough review of india's rape laws and efforts to expedite trials. meanwhile, police moved to quell a rally by about 500 students protesting the treatment of women as they moved toward a monument in new delhi. the students complained officials had declared the site off limits. >> ( translated ): we are taking out this peaceful protest. we don't have any conflict with the police. we have just come here to express our stand. all the students are expressing their opinions here as you can see so the police should allow all of us to pass through to the place. this is only our demand and nothing else. >> holman: the rape that ignited the protests was that of a 23- year-old woman attacked by six men, then thrown from a moving bus. overnight, she arrived in singapore via air ambulance for treatment of severe internal injuries. doctors described her condition as extremely critical. the top prosecutor in egypt has ordered an investigation of major opposition leaders for allegedly inciting revolt. an official in the prosecutor's office said today the probe will focus on nobel peace laureate mohammed el-baradei, former foreign minister amr moussa andormepresential candidate hamdeen sabahi. all three oppose islamist president mohammed morsi and the country's new constitution. the new u.s. senator from hawaii democrat brian schatz was sworn in today. he'd been lieutenant governor for the last two years. now, he replaces fellow democrat daniel inouye, who died this month at the age of 88. schatz took the oath of office on the senate floor after being tapped by hawaii's governor. the new senator said he'll seek election in his own right, in 2014. inouye wanted hawaii congresswoman colleen hanabusa to take his seat. she said today she respects the governor's choice. those are some of the day's major stories. now, back to margaret. >> warner: we turn now to russia, where a proposed new law on adoptions, causing alarm in the united states, came a step closer to being enacted today. ray suarez has the story. >> reporter: in moscow today, president vladimir putin said he does intend to sign a bill that bars americans from adopting russian children. >> you know, after all in the world there are probably a lot places where the quality of life is better than re, but so what? are we going to send all the children there? maybe we should move there ourselves. we need to support the proposal which is directed at doing everything in our own country in order to provide for a worthy future for all of our children. >> reporter: yesterday, russian lawmakers gave final approval to the legislation. it was, pointedly, named after a russian toddler who died after his adoptive american father left him in a hot car in 2008. the adoptions bill is a direct response to "the magnitsky act," signed this month by president obama. it slaps sanctions on russian human rights violators. russian president putin and other kremlin leaders have roundly condemned that measure. >> this is thout any doubt an unfriendly act towards the russian federation. and the main point here is not about officials that are not allowed to have bank accounts there or whose property will be controlled. >> reporter: but the russian response-- banning u.s. adoptions-- has garnered criticism even inside the country. >> ( translated ): concerning the law itself, of course it disappoints me, because we know a lot of instances when children who have no future here end up in the united states, and get a loving family and a future because the government takes care of them. >> reporter: americans have adopted more than 60,000 russian children in the st t decas. the impending ban means families currently in the adoption process are left in limbo. >> we've already started preparing our home. not remodeling or painting or buying furniture or anything but just preparing the emotional state of our home of ourselves and children for the change that is going to occur. >> reporter: for their part, senior officials in moscow have indicated that the bill will block children already selected for u.s. adoption from leaving russia. when it's signed into law, the adoption ban will take effect on january first. >> suarez: for more on all of this we are joined by lauren koc the director of development and communications at the national council for adoption, a nonprofit organization that promotes adoption. and fiona hill-- a senior fellow at the brookings institution who recently served as the national intelligence officer for russia at the national intelligence council. her upcoming book is titled "mr. putin: operative in the kremlin." welcome to you both. fiona hill, is this even about adopted children at all or is this about a more confrontational stance towards the united states? >> well, it i now about adopted children which, of course, the story makes very clear. but it's come out of really campaign politics on both sides of the united states and in russia. mr. putin first actually survived a bruising campaign to become president again in spite of the fact that everybody saw him as a shoe-in and as part of that campaign he did ratchet up anti-american sentiment. he blamed protests that took place around the elections for the russian parliament and around the presidential elections, many thousands of people out in the streets in moscow and elsewhere, he blamed those on the u.s. support. he's taken punitive action against u.s. n.g.o.s. he's declared many non-governmental organizations in russia that received foreign funding, especially funding to the united states to be foreign agents, people now under a new legislation have to register themselves as foreign agents and this is also part of that. >> so by ratcheting up anti-american sentiment does this kind of thing play well where with the russian public? keeping the offense inside the country -- the orphans inside the country rather than letting them go into the united states? >> well, part of the story is also the legislation that's just gone through the congress that the president signed last week and this is seen in many respects as a tit for tat, the u.s. always, in the russian view applies a double standard and is always taking punitive action and applying sanctions against rush so that so this does play well. however, i think as we saw from the clips at the begining there's been some soul searching on the part of many russians about the this particular bill because this is a disproportionate action. this is something that hurts russian children as well as ordinary families. so this is really sort of taking things in a very different angle. >> suarez: lauren koch, in an era where international adoptions have become more common in the united states, where does russia rank as the home country of foreign-born adoptys here? >> historically russia has been one of the most popular sending countries to america. right now china is the leading country. russia is certainly in the top 5 with over 700,000 orphans in that country. there's certainly plenty of children who need a loving family here in the united states. >> suarez: how about that side of the story. unicef estimate there is's only about 18,000 russian families looking to adopt children. that's a disproportionate number considering the need for new homes. >> it is. last year alone here in america there were a thousand children adopted from russia. there are many american families, many of whom right now are in the process of adopting these children that are willing, ready, and able to adopt these kids, some of which have severe special needs. so it speaks to the heart of esamerican families that are willing to adopt these kids and bring them home. the. >> suarez: but there have been unfortunate stories that have gotten a lot of attention here in the united states and back in russia >> does that make things more difficult for your organization and others that are watching international adoptions? >> sure, well, i think what we have to remember here is there have been over 45,000 children from russia have that have come to america. most of whom thrive in healthy, successful families here. the very small number of caes of abuse, neglect and very terrible cases death shouldn't account for such a large number of successful adoptions that have happened. i would hate to see orphans in russia now suffer simply because of a couple of very tragic and sad instances here which, by all means, should never be overlooked. any cases in which a child is in a harmful situation should always be taken very seriously. >> suarez: fiona, we saw the russian president, mr. putin, talking about keeping the kids here and taking care of them here. is there a nationalist aspect to this? is it considered an embarrassment to russia that so many kids-- more than 700,000-- have no place to live? >> i think that's certainly case. in fact, if you look at these instances, there's always a national element to something like this. there's certainly plenty of people in the united states who also believe that would be parents should be adopting here in the united states and taking care of their own children. this is, as i said, a phenomenon that you hear in european cou reis and others that there's resistance building up in many places to transnational, to international adoptions and often this kind of sentiment plays very well but i think as lauren will probably tell us, from the very statistics it doesn't always translate into stepped-up adoptions at home and certainly not into more many orphanages and for the extensive care systems that children require. so actually i have to see if because mr. putin is now stuck some of his reputation on this, he made those pronouncements as we saw on the t.v. clip at his big annual press call and he's laid out in many respects a commitment to do more so we'll have to see if that is indeed the case. >> suarez: lauren, haven't other count freeze time to time either curtailed or shut down totally the flow of children to the united states? >> we have seen this. most notably probably guatemala, ethiopia. that was a potential recently. we've also seen president putin threaten very similar bans on american-russian adoptions in the past. and he has before now never signed a ban like that and what we can hope for right now is that he won't find it still and that we can make sure these children find safe, loving families. >> suarez: this isn't the only irritant in the russo-american relationship, is it, fiona. hasn't the russian duma recently passed another bill making it difficult for the united states? >> they have. as i already mentioned, unfortunately we've been in this reciprocal actions and legislative combat for several months now since the elecion campaigns on both sides of the atlantic and we've already seen the russian duma pass legislation that's been punitive against some governmental organizations in part driven by the this idea that the u.s. government is sponsoring some of the political protests against president putin's presidency. so we're in that kind of phase that unfortunately we're in very frequently in the u.s.-russian relationship. if we look back over the last 20 years, since the collapse of the soviet union, we've constantly tried to reset the relationship with russia and time and again after a brief period of you poor ya about a new partnership or start, we end up within several months to a year of being right back again to some kind of spot over spying, over legislation that's perceived as a double standard by the russians or over some large issue. there's many irritants, unfortunately, in the relationship. >> suarez: fiona hill, lauren koch, thank you both. >> thank you. >> brown: next, the european financial crisis as it's playing out at street level. i had a chance to see for self recently on a reporting trip to athens. for nearly two decades, stelios karagilanis, a father of two, headed a family-owned construction company. today, his business closed, he is forced to accept free medical care and food from an aid clinic. >> ( translated ): we never imagined it. we were never wanting for work and we had a very dignified lifestyle. >> brown: is it hard to have to come here? >> ( translated ): it is very, we are not used to this way of life. >> brown: karaglilanis and others we met in athens recently put faces to grim statistics: a stunning 26% unemployment rate. 58% for young people like george georgopoulos, a college graduate who's decided he must leave the country for now. >> i hope to move abroad for a master's degree. it was my dream. but now i have to do it. >> brown: greece's economy is entering its sixth year of recession and has shrunk by a fifth in just the last three years. paralyzing businessmen like shipbuilder vassilis halkitis, who had to lay off half his workers. >> ( translated ): we're talking to a major client about building six new ships of 60 meters in length. however, the client is holding back on the contract until he is convinced that greece will not go bankrupt. >> brown: for individuals it all adds up to a reduced standard of living and an uncertain future. for greece as a whole, it means that and more. the headlines are about finance ministers, debt deals, austerity measures. but it's become clear that he problem here in greece now goes well beyond just the economy. as a recent european commission report says: after years of weak growth, the crisis is now having severe social consequences. look up and you still see the ancient acropolis, symbol of a glorious past. and some parts of the city bustle with holiday energy. but not far away: closed-up storefronts. and, further below the surface, this: a health clinic set up by the greek branch of the international aid group, doctors of the world to serve the country's newly poor. dr. nikitis kanakis is its director. >> brown: kanakis group, in fact, had to cut back some of its work in africa because of the needs at home. here in perama, unemployment tops 50% as the shrinking economy has crippled much of the local shipping industry. at the same time, the deeply indebted greek government has made dramatic budget cuts, including to health benefits. the combination has left many here without access to private or public care. and that's meant a stunning rise in disease and mortality rates. >> brown: economists, of course, speak of a different kind of necessary medicine: the kind a deeply indebted nation must take. the price for living and consuming well beyond its means for far too long. >> the medicine is necessary. it was, though, delivered very abruptly. >> brown: as a government economic advisor, gikas hardouvelis helped negotiate some of the budget cuts and austerity measures greece agreed to in order to get international bailouts, more than $300 billion now with the private eurobank, he says the swift fall, however necessary, is bringing pain at historic levels. >> by the end of 2013 greece would have a worse depression than the great depression in the u.s. >> brown: worse than the great depression? >> yes and this depression is affecting everyone. i would say the middle class is carrying the burden and it is carrying the burden because the state sector is unable to distribute the burden in an equal way. >> brown: and that has hardouvelis worried about a further consequence: a tearing of the social fabric. >> they simply lost their living standard and they're trying to find a scapegoat for it. it's very important in this period for greeks to see the positive side things and not eat each other up. >> brown: "not eat each other up": the scapegoating, so far, has centered on immigrants from africa, afghanistan and elsewhere. by boat or across the turkish border, greece has functioned for years as an easy-to-enter gateway into the rest of europe. and one that by all accounts